The greatest irony of all…
Even with all SEC filings I read, a footnote in the summary compensation table of Dollar Financial’s (DLLR) recent proxy probably qualifies as the most ironic thing I’ve come across. Ever. Why? Because Dollar, whose primary business is providing high-interest payday loans to low-income individuals, has decided to forgive the interest on a loan to its Chairman and CEO, Jeffrey Weiss.
Though it’s not clear how much the initial loan was made for or the other terms of the loan, the interest forgiveness was for a whopping $2.3 million. Since we’ll assume that Weiss qualified for a low interest rate (as opposed to the hefty interest rates typically charged payday loan customers), the loan was probably in the neighborhood of $15 million (based on a rough estimate). The company provides no details, other than to note the amount of the forgiveness, but one can only assume that the loan was made to purchase shares of Dollar when it went public at $16 a share earlier this year. The stock is currently trading at around $11.
Now imagine if Dollar Financial applied the same generosity to its customers as it granted to Weiss. They wouldn’t be in business for too long, would they?